Is Debt Consolidation The Best Way To Make Multiple Payday Loans Payment?

Payday cash advances are so easy to borrow that a vast majority of borrowers often end up acquiring more than one loan at a time. But, since payday lenders charge an extremely high cost for these lending programs, borrowers often fail to afford multiple payday loans payment. Missing payments on multiple debts makes the situation worse for them, as the outstanding debt balances keep growing at a very fast pace. Many times, the situation goes out of control and becomes so horrible that bankruptcy looks like the only possible option to get rid of the mounting payday debts. In the recent past, debt consolidation has emerged as one of the best alternatives to bankruptcy. There are many reputable companies in the market that offer different types of programs to consolidate payday debts. There have been instances where borrowers have succeeded in paying off several thousand dollars of payday debts using this method. Therefore, if you are also trapped into a vicious cycle of payday debt, you can contact a reputable debt consolidation company and review the solution they are suggesting. Following is a brief rundown on how it works.

Free Initial Online Consultation

When it comes to using the services of a reputable debt consolidation company to make multiple payday loans payment, you will be glad to know that many of them offer the first consultation free of cost. You do not even have to visit their office for this. You can get this consultation online, right from the comfort and convenience of your home. In order to initiate the process of free consultation, all you have to do is just to fill up a simple form, where you are required to provide some basic details about you.

The Company Reviews Your Situation And Suggests

A Suitable Plan

As part of this first consultation, the company requests you to provide details about your debts, income and expenses. They do a thorough assessment of your financial situation and then suggest you a debt consolidation plan accordingly, something that you can easily afford.

Negotiation With Your Creditors Takes Place

Once you agree to sign up for their suggested consolidation plan to make multiple payday loans payment, the company then contact your payday loan lenders as the next step. It is very important for you to understand that lenders are not legally obligated to accept any debt consolidation as such. Therefore, the company has to convince your lenders as well. Experienced payday debt consolidation companies know how to negotiate an attractive deal with the lenders in favor of their clients (borrowers). Using their expert negotiation skills, they often succeed in convincing your lenders to waive off high penalty charges and write off a certain portion of debt. If you are lucky enough, they can reduce your debt burden by as high as up to 50%. This may sound like something too good to be true, but payday lenders can actually agree for such deals, especially when they had issued a small amount of loan initially, but the outstanding balance has now become more than double or triple of the original principal amount because of the accumulation of extremely high interest charges.

A Final Agreement Is Signed By All Parties

After the negotiation process is complete, you are updated with the developments. Then a final agreement is signed by all the parties. You are strongly recommended to read the terms and conditions of this agreement thoroughly before you sign it. Make sure that you understand the cost of the service and whether it is truly beneficial for you. Besides that, you must also make sure that the new repayment is affordable enough and that you can make the consolidated payments every month without any difficulty. As per this agreement, your outstanding balance is reduced to a significantly much lower amount than you currently owe to your lenders and you are requested to pay back that amount in easy monthly installments over a certain number of months.

Even if you have to make multiple payday loans payment to different lenders, you just have to make a consolidated single monthly payment to the debt consolidation company who is handling your case. The company acts as a mediator and pays off your respective creditors as per the provisions of the agreement plan.